Uranium One (TSX: T.UUU, Stock Forum) announced Tuesday that the Kazakh Ministry of Energy and Mineral Resources has formally approved the start of industrial production at the South Inkai uranium mine.
The approval allows the company's 70% owned Betpak Dala joint venture to ramp up production at the South Inkai mine over the next three years to 5.2 million lbs U(3)O(8) per year, says Uranium One.
“As a result of the approval, commercial production for accounting purposes will now commence at South Inkai. The processing plant at South Inkai was completed earlier this year, and the first sale of South Inkai uranium production is expected to take place shortly,” says the company.
Uranium One, which has assets in Kazakhstan, the United States, South Africa and Australia, says its attributable production from South Inkai is expected to be 766,500 lbs U(3)O(8) for 2008. The company expects its attributable production from the mine to be 1.5 million lbs U(3)O(8) in 2009. South Inkai is Uranium One's second mine to enter into commercial production.
Shares of Uranium One climbed 4.2% to $1.48 Tuesday morning.
On the company’s Bullboard, FIRSTBULL said: “Good progress, first Honeymoon mine and now South Inkai[sic].”
